The Swedish Armed Forces (SAF) hopes the government’s eventual capital investment plan will provide $34-44 billion in defense spending over the term of the next five-year Defense Policy Plan (DPP). This would amount to $7-9 billion a year, or substantially higher than the current level of annual budgetary spending.
The government has allocated $6.1 billion to the defense budget in 2016.
The SAF maintains that annual spending of up to $9 billion is a fundamental prerequisite if
To this end, the Social Democrat-led government has appointed Ingemar Wahlberg, a former permanent secretary of the parliamentary Committee on Defence, to the role of lead investigator to determine the level of capital financing
Wahlberg's report, which is expected to be completed no later than the end of 2018, will have a pivotal impact on the spending framework within the government’s next DPP. This will cover defense budgetary spending from 2020-2025.
The government needs to take a closer look at how major acquisition programs for the Air Force, Navy and land forces will impact future organization costs and funding requirements, said Defence Minister Peter Hultqvist.
"These are very important issues for the Armed Forces and for the future of national defense. I do not remember a similar investigation like this one ever [being] conducted before. It’s very important that we resolve our equipment needs and examine all dimensions — including the cost of future systems investments and maintenance," Hultqvist said.
In its DPP covering 2016-2020, the government has pledged additional funding of $2.1 billion to shore up the country’s combat readiness and defense capabilities.
The DPP for 2020-2025 is intended to add momentum to force readiness and capabilities. This will largely come from new weapons systems acquisition programs that give the SAF greater defensive strength and a higher level of offensive firepower.
A larger-than-standard segment of the investment program will be used to finance big-ticket procurement projects, including acquisition of additional Gripen fighter aircraft, a new submarine class, anti-submarine helicopters and the scaling up of Sweden’s underfunded air-defense systems.
Future decisions on long-term spending on defense will be weighted more on affordability rather than necessity, said Robert Devrindt, a Brussels-based political analyst.
"The maths are fairly simple here. If
The Swedish government accepts the military perspective that funding must markedly and rapidly increase, according to Member of the European Parliament Gunnar Hökmark, a member of Sweden's Moderate Party.
The MEP wants the Swedish government to borrow up to $4 billion to ensure that the SAF has the means and purchasing capacity to continue with its force modernization programs.
According to Hökmark, a once-off loan would not affect the long-term expenditure framework for national defense. Moreover, it would enable the SAF to further militarize
A higher spending level would enable the SAF to pursue and complete critical acquisition programs to add weapons systems, such as Leopard tanks, more Gripen fighters, a superior submarine class and naval frigates.
The SAF’s shopping list for 2016-2025 includes armored fighting vehicles, armored transport vehicles, mortar and anti-aircraft systems, the modernization of the submarine fleet, acquisition of air-defense systems, upgrades to the Navy’s core surface fleet vessels, and acquisition of up to 10 additional Gripen-E aircraft.
The shopping list also includes the purchase of guided missiles, anti-submarine hunter helicopters, upgrades to radar stations, the replacement of ageing training aircraft, transport aircraft, warships, minesweepers and anti-ship missiles.
As a ratio,
In terms of the GDP ratio, neutral